Arax Holdings Corp (ARAT)

[pennypauly]

On behalf of Arax Holdings Corp. (the "Registrant"), this current report on Form 8-K is furnished to disclose recent updates regarding the delay in completing the audit of the Registrant's annual report for the last fiscal year-end. The Registrant has identified challenges encountered by its auditors in interpreting the timeline and application of the generally accepted accounting principles (GAAP), specifically Subtopic 985-20,-25 relating to the capitalization of software production costs for external use subsequent to reaching Technological Feasibility. These intricate GAAP provisions stipulate precise timelines for capitalization eligibility of certain production costs. The Registrant is diligently collaborating with its auditors to finalize the Technological Feasibility determination and the appropriate capitalization of software production costs. A resolution is forthcoming, and the Registrant is committed to finalizing and filing the annual report promptly. Upon conclusion of the annual report, focus will shift to completing and filing the subsequent Quarterly report. Shareholders and interested parties may direct inquiries or comments to [e-mail].